US federal income tax is progressive by law, but which best explains why wealthy individuals can often pay far less in taxes than the top tax rate?

The top tax rate applies only to income within the highest tax bracket, not to all of a person’s income. Wealthy individuals may also use deductions and other legal tax provisions to reduce their taxable income or tax bill. Choice D best captures this broader use of tax laws; choice A names one example but is narrower.

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